Bonded Warehousing, Wet & Dry Bond

What is Bonded Warehousing?

And how do you know if you need this type of warehousing for your goods?

Do you run a business importing high end goods into the UK and are looking for the most cost effective ways to store your goods?.

Bonded warehousing offers the importer cash flow advantages and options to re-export without paying the duty. Rather than pay the import duty and VAT on items as soon as they are imported, choosing to store your goods in a Custom Bonded Warehouse, will defer payment until the goods are removed from the warehouse and sold in the UK. This assists companies tremendously with their business cash flow, ensuring that most of their cash isn’t tied up with paying these charges immediately, thus saving a large initial outlay.

Another reason for choosing a bonded warehousing company would be if the goods have been imported and you wish to re -export the goods outside of the UK where duty or VAT may not be payable. Bonded warehousing would be your best option in this case.

Here are two links to HMRC web pages which might assist you in your research on bonded warehousing.

You may also find this article, published previously in Warehouse & Logistics News to be of assistance – click here.

What is the difference between wet bonded warehousing and dry bonded warehousing?

There are two types of Bonded warehouses, both of which need to be approved and follow HM Revenue & Customs rules. We are unable to give advice in relation to the procedures & policies in place in respect of companies wishing to start importing goods into the UK. We recommend that you visit the HMRC Customs Guidance page by clicking here .

Wet Bonded warehouses

– are able to store Alcohol, Tobacco and other excise goods. In a Wet Bonded facility the duty on the goods may be paid or not.

Dry Bonded Warehouses

– are for the storage of all goods other than Alcohol and excise applicable goods.

Before entering into a contract with any warehouse providers who own bonded status warehousing, you will need to speak to HMRC in order to obtain all relevant licenses that your company will require in order to import & distribute such goods. The status of bonded warehousing is applied to the warehouse operator (not the warehouse). It is therefore not possible to rent or buy a bonded warehouse facility in the UK. If looking to rent your own property under bonded status, you will need to rent a warehouse, adapt that warehouse to HM Customs regulations and then apply to the HMRC for your own bonded status. If successful the status will be applied to your company name and not the property. The regulations are strict and there are several guidelines that you must adhere to and which will be assessed regularly by the HMRC to ensure guidelines are being followed and adhered to.

There are fewer warehouses in the UK with Bonded status than ambient warehouses, some just dry bond and others with wet or both. For this reason when searching for a Bonded warehousing, in particular a wet bond, you will have to consider widening your search area. Whichwarehouse has a number of warehouse companies listed within our network and you will find full details by using the find space tool on our site. Alternatively give us a call and we will be happy to discuss your requirements with you to see if we have any suitable facilities. Call 0800 1707 555for current availability.